H&R Block DIY clients asking about tax refunds, extenders, child tax credit
“When working on a tax return, some DIY clients find all the information they need within the product itself, while others have questions about how tax law changes impact them,” said
The questions asked via the free, unlimited, live chat for online and installed software clients (it can be added to H&R Block More Zero) go to a team of tax experts at
“This tax season, the topics DIY clients are asking about the most are tax refunds, the extended tax benefits called ‘extenders’ and the child tax credit,” said
Following are some of the questions
Why is my refund higher or lower than last year?
Normally, the reasons for a change in refund would be changes in withholding, deductions, number of exemptions, credits, income or type of income. The best way to assess the difference is to compare the 2017 return to the 2016 and see if there are any lines with dramatic differences.
Why am I not getting all the credits I tried to claim?
“The most common reason a taxpayer is not seeing a tax credit benefit their bottom line is because the credit is nonrefundable, which means it is limited to tax liability. This means if your tax liability is zero, adding a nonrefundable credit won’t benefit you, even if you qualify for it. Also, remember that your tax liability is not the same as your tax refund; you could have a tax liability and still get a refund because of withholdings on your W-4,” Ebel said.
Only refundable credits, such as the earned income tax credit or the additional child tax credit, would increase the amount of a tax refund if the tax liability already was eliminated.
Taxpayers who are curious about what tax year 2018 will look for them can use H&R Block’s free tax calculator to estimate their tax refund and tax reform impact.
Why didn’t my refund amount change when I entered information to get a specific deduction?
Some tax benefits do not benefit everyone’s bottom line in the same way, even if the taxpayers meet all the requirements. For example, some taxpayers might not see a change when they enter home mortgage interest as an itemized deduction if they are taking the standard deduction. Or, if taxpayers input stock information, they may not notice a change if their capital losses already exceed
I was told I’d have to wait to file to claim certain tax benefits – why?
The updated forms will allow taxpayers claiming these tax benefits to e-file their returns, instead of paper-filing them.
“The inclusion of the home energy credit for new furnaces, windows, etc. in the tax legislation that passed in February will have some taxpayers needing to search for their 2017 receipts for to see if they qualify for any of the extended tax benefits,” Ebel said.
Child tax credit
Why am I not getting the child tax credit?
Often when a taxpayer no longer sees the child tax credit benefit this year, but they claimed it last year, it is because their child turned 17 and is no longer eligible. In anticipation of this happening in the future, taxpayers can adjust the withholding on their W-4, if they want an outcome like years past. Additionally, taxpayers could also be subject to an income phaseout, which for the child tax credit was
“Keep in mind that when claiming the child tax credit, the tax return must also include the name and taxpayer identification number – the
Taxpayers have multiple ways online to access
For Further Information
Source: HRB Tax Group, Inc.